Are you trying to sell your business, and quickly? Check out these tips as they may help you achieve your goal.
1. Have a reasonable listing price.
2. Be prepared to negotiate.
3. Have a folder of information readily available for a qualified buyer.
4. Run the business as usual.
5. Make sure the business presents well; give it a “spit and polish.”
6. Get a current snapshot of the business financials and keep them up-to-date.
7. Put together a current list of Fixtures, Furniture, and Equipment (FF&E).
8. Consider counting all inventories so the value is known. This helps the buyer understand the final purchase price and reduces one of the many areas of negotiating a deal.
Of the reasons a business does not sell, the number reason is that the price listed for sale is unreasonable. An unreasonable price can be seen by looking at the earnings the business is generating and then looking at the business from the buyers perspective. The buyer will have their fixed cost minimums such as mortgage and household bills to cover. If they buy a business they need a requisite down payment plus the business needs to have enough cash flow to support any debt the buyer needs to service. Plus their needs to be a buffer in case the business loses sales due to the business transition.
To make sure the business is reasonably priced, a valuation can be performed and this will guide the owner on the most appropriate listing price. The cost of a valuation can vary from $500 up to $3,000 depending on the complexities of the business.
If you are motivated to sell your business quickly, be careful how you handle each buyer inquiry. If you disclose too much information too quickly it may result in a lower offer from the buyer. Additionally, the buyer may sense your urgency, also contributing to a lower offer or in some cases, frightening the buyer away as they may be concerned something is being hidden.
According to the California Association of Business Brokers, it takes about 7 ½ months to sell a business; if it sells. Once you receive a written offer from the buyer and start the negotiation process, it will take anywhere from 6 to 8 weeks to close escrow if inventory is included in the sale. It may take longer if licenses such as alcohol, contractors and other specialties are required.
There are many complexities to selling a business. Using the services of a qualified business broker can protect you and your business and achieve your goal of selling your business in the shortest time possible for the highest purchase price.
If you would like more information about selling your business, visit my website; http://www.Andrew-Rogerson.com and order a copy of my book Successfully Sell Your Business: Expert Advice from a Business Broker.